Minutes

of the

Regular Meeting of the

Detroit Lakes Development Authority

Tuesday, January 20, 2009

4:30 PM

City Administration Building

Conference Room

MEMBERS PRESENT: Jim Anderson, Bruce Imholte, Greg Hildenbrand, Mark Hagen, Mary Beth Gilsdorf, Tom Klyve, Dennis Winskowski

MEMBERS ABSENT: None

OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann, Pippi Mayfield, Mayor Matt Brenk, Ron Zeman, Walt Tollefson, Jenny Nelson, Casey Bristlin,
Roger Winter, John Winter

I. CALL TO ORDER:

Chairman Jim Anderson called the meeting of the Detroit Lakes Development Authority to order at 4:30 PM in the Conference Room of the City Administration Building, 1025 Roosevelt Avenue on Tuesday, January 20, 2008. All members of the Authority have been duly notified of the meeting and the business to be transacted.

II. MINUTES:

A motion was made by Commissioner Greg Hildenbrand seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to approve the minutes of the regular meeting held November 18, 2008.

III. FINANCIALS:

A motion was made by Commissioner Mark Hagen, seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to approve the financial report and payment of claims for the period ending November 30th, 2008.

IV. OLD BUSINESS:

A. None

V. NEW BUSINESS:

A. Review of 2008 Annual Report

The Commissioners reviewed the 2008 Annual Report of the Detroit Lakes Development Authority’s activities. A motion was made by Commissioner Tom Klyve, seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the report as presented.

Larry Remmen reported that RDG’s “Business Corridor Redevelopment Plan” for the City of Detroit Lakes had been selected by the American Planning Association to be used as an example for their upcoming annual meeting in Minneapolis. They have asked Larry Remmen to be a speaker at their meeting.

B. Consideration to the request for tax increment financing for redevelopment of the Washington School property and setting a public hearing for TIF consideration

Roger Winter, Casey Bristlin and John Winter were present to request $350,000 in Tax Increment Financing for the redevelopment of the Washington School into 24 to 30 senior apartments. The request is for $150,000 up front with the remaining $200,000 on a pay as you go basis. This would involve 20 years of TIF payments. Winter reported that they were working with Gordon Grabow, Detroit Lakes Housing Authority for his assistance in developing a senior housing facility. The board did feel the project ties in with the RDG recommendations for that area.

The board did express support for the TIF project on a pay as you go basis but would like to see a revised application that included the following:

Number of units to be built;
Type of facility (such as senior apartment or assisted living)
A more detailed site plan and cost estimate based on the plan;
More detailed financial information (page 3) along with financial projections and/or proforma for the project.

Once the revised application and site plan is received, it will be reviewed by the Development Authority at their next meeting.

C. Review and approval of the request for proposals for the Crescent Redevelopment Area

The Authority received and reviewed the RFP draft for the Crescent Redevelopment Area. Larry Remmen requested comments, suggestions or changes to the RFP.

The following information was discussed:

· Discussion was held regarding the extension of the time frame for potential developers to submit their proposals for the area;

· Extending the date from March/April to July will allow more developers to submit proposals and more time to study the RDG plan;

· Should the RFP area be divided;

· Should the project be completed in phases;

· Should the RFP contain more specific information;

A motion was made by Commissioner Dennis Winskowski, seconded by Commissioner Bruce Imholte to send out the current RFP with a time extension deadline to submit proposals to the Authority by July 31, 2009.

The motion made by Commissioner Dennis Winskowski was withdrawn and Commissioner Bruce Imholte withdrawing his second to the motion to table this item until the February 13^th Development Authority meeting to clear up the language of the RFP.

D. Consideration to JOBZ incentives for Nor-Am Cold Storage at 503 East Front Street

Chairman Jim Anderson opened the public hearing for Nor-Am Cold Storage at 503 Front Street.

Larry Remmen reported that there is a new company in Detroit Lakes that has purchased the freezer plant and is requesting JOBZ incentives. Nor-Am Cold Storage will create 5 new jobs. One paying $16.00 plus per hour and 4 paying $12.00+ per hour. The projection of 8 created jobs the first year will be followed by 12 within the next three years. A motion was made by Commissioner Greg Hildenbrand, seconded by Commissioner Mark Hagen and carried unanimously to approve the request for JOBZ credits.

Consideration to the approval of JOBZ incentives for Sun Wise Foods, LLC

Chairman Jim Anderson opened a public hearing for Sun Wise Foods, LLC., a company that will be using a portion of Nor-Am Cold Storage. In 2008 the Authority approved JOBZ credits for Sungrown Foods, manufacturer of sun butter and jelly sandwiches. Since that time, the owners have separated Sun Wise Foods, LLC was formed by Bill Daggett and Jenny Nelson. Their company will be manufacturing the sun butter and jelly sandwiches. 8 jobs will be created at $12. Since Sungrown Foods did not start up operation at the facility they are not eligible to receive the JOBZ credits. Jenny Nelson reported the Sungrown Foods has been dissolved.

A motion was made by Commissioner Mark Hagen, seconded by Commissioner Dennis Winskowski and carried unanimously to approve JOBZ credits for Sun Wise Foods, LLC., subject to the on-line application to the State of Minnesota, and a assurance from Ed Gerhke stating Sungrown Foods is no longer in operation.

Other

Tower Road Industrial Park Screening

Larry Remmen reported that he had a meeting with Becker County Soil and Water with reference to the proposed recommendation of screening for the Tower Road Industrial Park. The screening will consist of a wind break with a hill along the edge consisting of Norway poplar and black hills spruce trees. Along the southern boundary next to the wetland area there will be dogwood and laurel leaf willow. The soil is very sandy in that area. The total project cost is $4,552. The Authority’s cost share of the project is $1,138. There may be some other minor expenses, but nothing major. Due to the sandy soil prone to dry conditions, the Becker County Soil and Water did not recommend a berm in the area and the area residents were in agreement to the Conservation’s recommendations. A motion was made by Commissioner Mark Hagen, seconded by Commissioner Tom Klyve and carried unanimously to approve the planting recommendations presented by the Becker County Soil and Water to the Development Authority.

IDC Meeting

Tomorrow morning there will be a meeting of the Becker Lakes Industrial Development Corporation to discuss the possible funding for the North Industrial Park expansion in exchange for lots.

VI. Adjournment

There being no further business to bring before the Board, the meeting was adjourned.

Signed

Larry Remmen Community Development Director